Tips Highlighting How to Increase Conversion Rate in Retail
If you’re a retailer, you’re always looking for ways to increase your sales and conversions. After all, the more customers that you can convert into paying ones, the better off your business will be! But how to increase conversion rate in retail?
There are many ways to boost your conversion rate. In this article, you will learn 10 essential tips on how to increase conversion rate in retail in no time!
What is conversion rate in retail stores?
In the world of sales, the conversion rate is the rate at which a visitor becomes a customer.
It makes more sense to increase your conversion rates because you’ve already gotten the visitors to click on your CTA, so they’re more likely to buy if you make it simple for them.
Why is the conversion rate important?
Retailers can use knowledge of how quickly customers make purchases to inform marketing, understand customer bases, and improve processes. Sales numbers can give insights into how successful retailers were on any given day.
By knowing their conversion rates, retail businesses can better understand their sales figures and their potential sales volume. This can help inform their decisions about the layout of their stores, as well as how they market themselves.
Understanding your conversion rate can help you understand if your marketing efforts are successful at persuading people to buy your products. It can also help you understand if your products are popular enough. By knowing this, you can work to improve your marketing strategy, your store layout and your product offerings.
By improving conversion rates, retail businesses can increase revenue without finding more customers.
Learn more about conversion rate optimization here.
What is the average conversion rate for retailers?
The average retail store converts 20-40% of visitors into customers. You can use this as a benchmark for your own store.
Your conversion rates can vary depending on different factors. For example, if you’re running a 24-hour flash sale, you may see an increase in conversions.
If you are understaffed, your retail store may suffer from lower conversion rates.
To accurately measure your conversion rates, you need to look at the bigger picture. Look at your rates over longer periods of time, such as a week, a month, or a quarter. This will let you see trends over time, and will help you notice any improvement.
Conversion Rate – Make More Informed Business Decisions
This sentence is saying that the conversion rate can tell you how well your retail stores are doing.
To find your average, don’t make any changes. Compare the following to find which tweaks influence more customers to leave with an item in hand:
To figure out your average conversion, take the total number of sales and divide it by the total amount of customers. This should give you a baseline number to compare against. To see how changes to your layout, products, and prices affect conversions, try out new arrangements, pairing up related products, and offering 15% or 20% off.
Key Performance Indicators (KPIs) for Retailers
If you’re a retailer, you should track key performance indicators to measure how your stores are doing. KPIs are standards for what good performance looks like.
If you fall below your KPI, it’s an indication that you need to put in some extra work.
The conversion rate is a more accurate indicator of retail store performance than other KPIs because it doesn’t fluctuate as much day to day.
Some other key performance indicators (KPIs), such as the number of people walking past the store and the store’s gross revenue, can vary significantly depending on which day of the week it is and what events are happening in the town.
A festival happening close to your store might bring in $20,000 in retail sales on that day. However, this is not a sustainable benchmark – you won’t be able to consistently bring in this amount of sales.
If failure is what you want, then by all means, use that goal.
Conversion rates in retail are a better indicator than revenue because they measure actual sales, rather than estimates. This metric helps you understand how the shopping experience impacts a shoppers’ decision to make a purchase, regardless of the sample-size.
Gap’s Staffing Study Boosts In-Store Sales
A store’s conversion rate is greatly affected by the in-store experience customers have.
The experiences that customers have in-store are greatly impacted by the staff. Sales and retail associates play a big role in providing these experiences.
Before the experiment, the retail store’s employees had extremely complex, and often conflicting, work schedules.
When GAP simplified its employee scheduling, it saw an 7% increase in store sales and 5% in productivity. This translated to $2.9 million in additional revenue.
9 million people were affected.
Store Layout and Conversions
The arrangement of your retail shop, even if it’s only a little, can have an impact on your conversion rates. Placing your merchandise in a manner that prompts clients to purchase associated products can raise your average sale amount.
What are your thoughts on pairing t-shirts with other items of clothing? Do you think it would increase average order value?
But for the people who are just browsing, walking in and looking for them can be annoying.
Social distancing is sure to have a positive impact on the bottom line.
That should definitely have a positive impact on your business.
Visual Merchandising – Achieve Higher Conversion Rates
Did you know, on average, that 3 out of 10 customers will buy something they didn’t intend to buy while shopping? This is great news for you, as it means that if your products are showcased in the best way, you stand a better chance of persuading them to purchase them.
Lighting, color, and arrangement can all affect how attractive your products are to potential customers.
Shopify POS – Inventory Management
But you also want to avoid having too little stock of a popular item, or even worse, having that product go bad.
Customers don’t want to visit a website and not be able to purchase anything.
Having a centralized inventory management system is integral to keeping tabs on your products. With Shopify, you can track your inventory at each of your locations.
If your stock is low, set a notification to reorder.
This way, you can make sure you’re never turning a customer away from your store because they don’t have the item in their size, or the color they wanted.
Checkout Process and Options
A 2017 study by National Retailers Association found that 97% of consumers have abandoned a purchase because it was too time consuming.
The overwhelming majority of customers will abandon their purchases if faced with long checkout lines, no self-service option, or having to spell their email address out on a piece of paper.
It’s really annoying when stores try to sell me unsolicited emails after I make a purchase. It’s obvious that they’re not doing it for my convenience, but simply to get leads.
How to Increase Conversion Rate in Retail?
The number one reason for leaving your store empty handed is because they couldn’t find what they wanted. Most of the tips to increase conversions will revolve around this.
The main reason people leave your store without buying is because they didn’t find what they want. Improving conversion rates usually focuses on addressing this issue.
You will find that the main reason people leave your store without buying is because they didn’t find what they want. Most of the ways to increase conversion will focus on this aspect.
Here are 10 things you can do to make sure your customers find what they’re looking for and buy it from you:
- Improve your product knowledge so you can guide customers to the right products.
- Hire salespeople who are friendly and helpful, not pushy.
- Change your store layout and navigation to make it easy for customers to find what they need.
- Avoid analysis paralysis by making decisions quickly and efficiently.
- Capture missed opportunities by following up with customers who didn’t buy something they were interested in.
- Implement an easier, faster checkout process so people don’t get frustrated and leave before completing a purchase.
- Review your store’s return policy to make sure it’s customer-friendly and easy to understand.
- Offer free shipping on orders over a certain amount or for loyalty program members to encourage people to buy more from you at once.
- Create a sense of urgency by running time-limited sales or offering limited-edition products.
- Focus on the customer’s journey through your store so you can identify any pain points and address them accordingly.
The Importance of Having the Right Salespeople
Having salespeople who understand the product they are trying to sell will help improve conversions. Often times customers will request a product that isn’t available, but may have an alternative.
Having a team of well-trained salespeople with in-depth knowledge of your products will help guide customers toward alternative solutions, thus completing the sale.
Have you ever gone shopping with a specific goal in mind but ended up buying something entirely different? Maybe the product you purchased was better or cheaper than the one you were searching for. Either way, you were just as satisfied with your purchase.
Some people are better at selling than others. Not everyone is replaceable, which is what people say. Hiring the right salespeople has the biggest impact on sales and conversions.
Sometimes, sales for expensive products can only be completed by your most experienced salespeople.
If you want to improve conversion rates in retail sales, make sure you have a sales staff and a lead generating system. The most successful salespeople are the ones who receive the same volume of lead, but they also have excellent persuasive abilities.
Make it Easy on Your Clientele
In many cases, customers can’t find the product quickly and easily, so they leave the store without buying it.
Sometimes, you won’t have a sales rep available to help a customer. A simple fix is putting up signs that clearly direct customers to where they need to go.
When designing a store, it’s important to consider how people will actually use it. Don’t just design it based on how it looks, but on how it functions. This will increase conversions and make shopping easier for consumers.
For e-commerce sites, think about how you present your product categories, related items, and filtering options (by size or by colour).
You might be surprised to learn that giving your customers too much choice can actually make them less likely to buy.
The 80/20 principle states that 80% of sales come from 20% of products.
That’s why it’s important to offer in-demand products, and to offer a wide range of them.
Know the Sales Process In-and-Out
If you want to prevent your customers from walking out the door, it’s important to have a system in place for capturing missed business opportunities. This entails making sure your products will be available again in the future. Improving your conversion rates and sales figures will result from working on this as well.
Analyzing the search terms that your customers use to find your site, as well as those that they search for on search engines but don’t click your links, can give you insight into your web traffic.
In Google’s Search Analytics, you can investigate which search queries your customers use to find your store, and how well you’re ranking for those searches.
By finding and stocking products that your competitors don’t carry, you can both improve your click-through rate and your conversion rates.
How to increase conversion rate in retail? If you want to increase your conversion rate, then you need to make sure that your prices are competitive. After all, customers are more likely to buy from a store that offers lower prices! So take a look at your competitors and see what they’re charging for similar products.
Then, adjust your own prices accordingly.